The media player market is now in decline, and Zune was never a major part of it, even in the US, the country in which Microsoft first released the platform. You can now buy them now in Canada too, apparently.

Folk use their phones as media players these days, which makes Microsoft's decision to base its smartphone platform on Zune's system software all the more sensible. Indeed, said the source, MS' Zune efforts, such as they are, will be retargeted at Windows Phone 7.

If only on the basis of persuading Nokia to buy into WinPho 7, the phone OS will do more for Microsoft's bank balance than Zune alone ever would have.